Rollins (NYSE:ROL) Reaches New 12-Month High - Still a Buy?

Key Points

• Rollins, Inc. reached a new 52-week high of $59.12, closing at $58.89, with strong trading volume of 270,221 shares.
• Analysts provide a positive outlook for Rollins, with the company receiving multiple "buy" ratings and an average price target of $62.18.
• The company recently declared a quarterly dividend of $0.165, representing a 1.1% yield, while posting a 12.1% year-over-year revenue increase.

Rollins, Inc. (NYSE:ROL - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $59.12 and last traded at $58.89, with a volume of 270221 shares changing hands. The stock had previously closed at $58.52.

Wall Street Analyst Weigh In

Several brokerages have commented on ROL. Argus initiated coverage on shares of Rollins in a research note on Wednesday, June 18th. They issued a "buy" rating and a $68.00 target price for the company. Jefferies Financial Group raised Rollins from a "hold" rating to a "buy" rating and raised their price objective for the stock from $55.00 to $65.00 in a research note on Monday, June 2nd. Barclays boosted their target price on Rollins from $55.00 to $60.00 and gave the company an "equal weight" rating in a research note on Friday, July 25th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $65.00 price target (up previously from $63.00) on shares of Rollins in a research report on Wednesday, June 25th. Finally, Piper Sandler increased their target price on Rollins from $70.00 to $72.00 and gave the stock an "overweight" rating in a research note on Friday, July 25th. Seven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $62.18.

Rollins Stock Performance

The stock has a 50-day moving average of $57.12 and a 200-day moving average of $56.10. The firm has a market cap of $28.54 billion, a price-to-earnings ratio of 58.34 and a beta of 0.69. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.63 and a current ratio of 0.68.

Rollins (NYSE:ROL - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The business services provider reported $0.30 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.01. The firm had revenue of $999.53 million during the quarter, compared to the consensus estimate of $988.77 million. Rollins had a return on equity of 36.96% and a net margin of 13.70%.During the same quarter in the prior year, the firm posted $0.27 EPS. The business's revenue was up 12.1% on a year-over-year basis. As a group, analysts anticipate that Rollins, Inc. will post 1.09 EPS for the current fiscal year.

Rollins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Monday, August 11th were paid a $0.165 dividend. This represents a $0.66 annualized dividend and a yield of 1.1%. The ex-dividend date was Monday, August 11th. Rollins's payout ratio is presently 65.35%.

Insider Activity at Rollins

In other news, Chairman John F. Wilson sold 30,000 shares of the stock in a transaction dated Thursday, July 24th. The shares were sold at an average price of $58.04, for a total transaction of $1,741,200.00. Following the completion of the transaction, the chairman directly owned 632,727 shares in the company, valued at $36,723,475.08. This represents a 4.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 4.47% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ROL. Farther Finance Advisors LLC raised its stake in shares of Rollins by 56.4% during the 1st quarter. Farther Finance Advisors LLC now owns 6,254 shares of the business services provider's stock worth $340,000 after purchasing an additional 2,254 shares in the last quarter. Pallas Capital Advisors LLC bought a new stake in Rollins during the first quarter worth $225,000. Oppenheimer & Co. Inc. acquired a new stake in Rollins in the first quarter valued at $464,000. Gallacher Capital Management LLC bought a new position in shares of Rollins in the 2nd quarter valued at about $256,000. Finally, Wealth Enhancement Advisory Services LLC increased its stake in shares of Rollins by 305.0% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 159,741 shares of the business services provider's stock worth $8,631,000 after purchasing an additional 120,294 shares during the last quarter. 51.79% of the stock is owned by institutional investors and hedge funds.

About Rollins

Rollins, Inc, through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife.

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